So What’s the True Cost of Waiting for Rates to Go Down?

Many homeowners today feel locked into their current home — not because they can’t afford to move, but because they’re sitting on a 3–4% interest rate and don’t want to give it up.

So they stay put, waiting and hoping rates will come down.

Meanwhile, their life has changed.

They want more space, a better layout, or a different area — but they’re delaying the move because of the rate.

Here’s what waiting actually looks like in real numbers.

A Realistic Move-Up Scenario

Assume a $550,000 home with 5% down — a very realistic move-up price point in Austin.

At around 6% interest, the total monthly payment (principal, interest, taxes, and insurance) is about:

$4,116 per month

If rates drop to 5.5%, the payment becomes roughly:

$3,950 per month
About $166 less per month or ~$2,000 per year

If rates drop further to 5.25%, the payment is around:

$3,869 per month
About $247 less per month or ~$3,000 per year

Those savings are real.

But they lead to a more important question:

Is it worth staying in a home that no longer fits your life to save $2–3k per year?

Especially when there’s a very real chance rates stay in the high 5s to low 6s for much of the year.

The Cost Most People Don’t Calculate

Most people calculate the payment difference.

They don’t calculate the life difference.

• Another year in a layout that doesn’t work

• Another year without the space you need

• Another year in an area or school district you’re ready to leave

• Another year of “making it work”

• Another year of feeling stuck

That cost doesn’t show up on a mortgage calculator, but it’s very real.

Understanding the Real Cost of Waiting

Rates may come down slightly. They may not.

Even if they settle into the mid-5s, the difference in payment may only amount to a few thousand dollars per year.

For some homeowners, waiting makes sense.

For others, the lifestyle upgrade is worth far more than the savings.

The key is understanding the full picture — not just the rate.

Clarity Over Guesswork

Understanding what it would actually cost to sell, buy, and move into the home you really want — versus waiting on rates — allows you to make a decision based on numbers and lifestyle, not guesswork.

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If you want to understand your personal cost of waiting, send us a message and we’ll walk through it with you.